Bybit Hacker Launders $335M as Investigators Track Stolen Funds

The hacker behind the $1.4 billion Bybit exploit has successfully laundered over $335 million in stolen Ethereum (ETH) and staked assets, according to on-chain data.

Crypto markets reeled on February 21 after Bybit suffered the largest hack in crypto history, losing over $1.4 billion in liquid-staked Ether (stETH), Mantle Staked ETH (mETH), and other assets.

💸 $113 Million Moved in 24 Hours

In the past 24 hours, the hacker transferred 45,900 ETH (~$113 million), bringing the total laundered amount to 135,000 ETH ($335 million).

According to pseudonymous blockchain analyst EmberCN, the hacker still holds:

🔹 363,900 ETH (~$900 million) in stolen funds
🔹 At the current laundering rate, the hacker could “clean it up” in 8-10 days

🔍 North Korea’s Lazarus Group Suspected

Blockchain security firms—including Arkham Intelligence—have identified North Korea’s Lazarus Group as the likely culprit behind the Bybit exploit.

On February 25, four days after the attack, Bybit co-founder and CEO Ben Zhou officially declared war on Lazarus Group, vowing to track and recover the stolen funds.

Meanwhile, blockchain analytics firm Elliptic has flagged 11,084 cryptocurrency wallet addresses suspected to be linked to the Bybit hack, with the list continuing to grow as investigations unfold.

🔄 Bybit’s Swift Response Could Rebuild Trust in CEXs

Despite the massive scale of the attack, industry leaders believe Bybit’s proactive approach may actually help restore trust in centralized exchanges (CEXs).

Dan Hughes, founder of DeFi platform Radix, noted:

“Assuming the worst is behind us, the manner in which Bybit handled the situation may actually recover some confidence in CEXs. It would demonstrate that with adults at the wheel, centralized exchanges can be ‘trustworthy’ and responsible custodians of our assets.”

Bybit fully replaced the stolen $1.4 billion in Ether by February 24, just three days after the attack, and has continued honoring customer withdrawals without delays.

📉 A Major Setback for Crypto Security

The Bybit exploit alone accounts for more than half of the $2.3 billion stolen in crypto-related hacks in 2024, marking a significant setback for the industry.

With $900 million still in the hacker’s possession, the race is on to track, freeze, and recover the remaining stolen funds before they disappear into obfuscated laundering channels.

Bybit’s battle against Lazarus Group is far from over, and the crypto world is watching.